The Mudcat Café TM
Thread #97568 Message #1921914
Posted By: JohnInKansas
30-Dec-06 - 01:33 AM
Thread Name: BS: At last the UK pays up double.
Subject: RE: BS: At last the UK pays up double.
Using common interest formulae:
In 1945 the UK took a loan of $4,336,000,000 at a fixed annual rate of interest of 2% to be repaid in 50 annual installments.
As a simple "mortgage" the annual payment would have been $90,455,700.23.
The total paid back at the end of the 50 years would have been 4,522,705,012.
The total interest paid would have been $186,705,012.
Payments were formally suspended during at least one 6 year period to assist the UK with some "internal troubles." Because the UK "skipped a few payments" the total paid in interest may have been slightly more than was originally expected; but no forclosure actions were filed.